The AGM of AEON was held at 30th May 2019,
which around school holidays.
Since the traffic was less congested and the AGM venue was at somewhere just beside highway,
so I decided to attend it.
Since I arrived around the starting time of AGM,
so the door gifts already finished distributing,
I only received this:
The shares price of AEON is around RM1.50,
buying 1 lot will just cost around RM150,
receiving RM60 voucher after buying 100 shares of AEON,
sounds worthy~
Below are some of the pictures of the slide presentation and important points which I think is worthy to write it down:
We can see that the growth of Retail Sales are less than GDP Growth,
but how to interpret it depends on individual.
Will the Retail Sales catching up with GDP Growth?
Or will it be always lagged behind?
In another words,
is it that consumers spending is really low?
Or the retailers do not really understand what the consumers willing to spend at?
Mr Poh talked about retails segment first:
The Foodline division actually had a 7.1% growth.
The composition of merchandises:
By regions:
The performance of retail stores at different areas:
Also,
some stores which went through refurbishments and re-opened for more than 6 months:
For the retail segment,
the MD said that the focus will be on REFURBISHMENTS.
The target of REFURBISHMENTS is not just to increase the sales,
but to increase the profitability also.
AEON already at Malaysia for quite long and the average age of stores are around 13 years,
most of the old stores are running behind customer behaviors,
thus REFURBISHMENTS are needed to meet up with customer expectations,
and to be able to sell higher margin products.
The two main focus areas will be the food and kids products.
The management also mentioned that the stores at the northen area are not performing well,
and a lot of old stores at the central area.
The management also mentioned about AEON Bukit Raja,
the shopping mall which full of my childhood memories~
This store is performing badly because of AEON Bukit Tinggi and AEON Shah Alam.
As for the Property Management segment:
The occupancy rate is maintained at around 90%:
MD mentioned that some reasons of profit dropping,
are of high depreciation,
rental expenses and high energy cost.
He also said that:"The current business environment is uncomfortable."
The focus of AEON will be REFURBISHMENTS which requires less CAPEX,
the opening of new mall will slow down,
instead will open more Daiso and AEON Wellness:
AEON Mall Taman Maluri will be opening soon:
AEON also released financial report after market hour on the same day of AGM.
If you paid close attention to my portfolio,
you should know that I already sold my AEON shares,
left with only 100 shares to attend AGM.
The reason why I sold it,
was because of the opening of AEON Nilai at Q1 2019,
which the opening of new mall always caused higher expenses,
so I thought the financial result will not be good this time.
Ended up................
AEON gave a slap on my face:
Quite painful..................
Anyway,
this is because of using new accounting standard:
Out of my expectation,
the financial result improved.
Because of the newly renovated stores and newly opened malls,
the revenue increased:
The retail segment is performing well:
However,
the property management services wasn't doing good because of rental and depreciation.
The current year prospects:
In one word -- CHALLENGING.
Looking at AEON shares price now,
it already dropped to the price many years ago when I 1st started shares investment.
7 years ago and now,
the shares price is the same.
Is it worthy to invest now?
Investment is about doing own thinking, making own decision.
Thanks for reading.
I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.
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